Del Monte Foods announced that he is in the process of requesting bankruptcy protection while consumers in the United States opt for healthier and more economic options in the market.
The 139 -year company of commercial experience and recognized for its canned fruits and vegetables, said 912.5 million dollars in financing that will allow it to operate normally while the sale progresses.
“After an exhaustive evaluation of all the available options, we determine that a sales process supervised by the court is the most effective way to accelerate our recovery and create a stronger and more durable mounting,” said CEO Greg Longstreet through a statement.
Del Monte, who also owns a series of brands such as Accounting, College Inn and Kitchen Basics, saw an increase in sales of his joyba bubble tea division in fiscal year 2024, but not enough to compensate for the weakest sales of canned products.
“Consumer preferences have moved away from canned foods with preservatives in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring in Debtwire, a financial consulting.
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Inflation, tariffs and demands: these are the factors behind the bankruptcy of Del Monte
Due to the recent inflation rates in the US and the imposition of 50% tariff
Del Monte Foods, which is owned by Mount Pacific de Singapore, was also sued last year by a group of lenders who opposed the company’s debt restructuring plan.
The case was resolved in May with a loan that increased the interest expenses of Del Monte by 4 million dollars annually, indicates a statement from the company.
Del Monte declared that the bankruptcy request is part of a planned sale of the company’s assets.
With agency information
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